You want to save more effectively? Create a good savings plan!

When your life situation is more or less settled, the ratio of your monthly income and spending is quite predictable and you start thinking that it is high time for you to save some money for the future, you should prepare a strategy so as to save effectively. The earlier, the better so do not hesitate thinking that saving money will take away many good things from your daily life. Saving can be much less painful when you have a certain plan and you are aware of the goals and sense of what you are doing. Read our saving suggestions and gather funds for your better future.

Go online

Thanks to the Internet many things have become much easier, saving money, too. Visit some useful websites (Mint.com, GoSimplifi.com) and create an online plan for your savings, set goals and monitor the process from your couch. It is a very helpful device which makes saving process more visible and organized.

Change your point of view

If you think of saving as a loss, it cannot bring much success. Losing everyday pleasures, like eating out in fancy restaurants instead of preparing lunch at home or cutting down on snacks, takeaway coffee etc., will result in other, but long-term, pleasures. It is just a way of gaining money for making your dreams come true. You have always wanted to visit some places abroad or buy a summer house? In fact, you are exchanging one thing to another. Instead of coffee, you will have your great trip or the house. See the goal in your mind and the process of saving will be much easier.

Realize what is your goal

You must know what you want to achieve. As it has been already said, visualizing your dreams come true will give you a great amount of motivation to set money aside instead of spending it. Keep your goal in mind every time you want to buy the next unnecessary thing – it should help make the right decision.

Higher earnings? Higher savings!

If you get a pay rise…that is great! Celebrate and then think: does it mean that you can spend more again? If you have proven that you are able to live spending less money, why don’t you continue and just save even more? Consider transferring this additional money to your investment account automatically – you will avoid the temptation to spend it.

Compound interest

When you lose your enthusiasm see how your money multiplies. Compound interest is just interest on interest, the amount of money you have invested continue growing when it is reinvested instead of being paid out. Watch the process, calculate how much you will earn in the end and keep your motivation on a right level.

You deserve rewards!

Remember about celebrating some success from time to time. You should buy something for yourself, do a thing you miss because of saving and then continue working on the next goal. Rewards help you survive and, what is even more important, keep you motivated.

How to save effectively when your earnings are low?

Spending money for various purposes has become a normal habit for many people. It is definitely easier to put something aside if you earn a lot and do not have to put too much effort to find additional money. However, a huge number of people are not in such good situation. That is why we ask: how much can you save or can you afford to save some money at all? Even if your answers are, respectively: “-Little.” and “-Not really.” we still have some good news. You can find money for saving even if you live on a shoestring. Read this article and learn what options you have.

1. Look carefully on your spending. Analyze how much you spend and for what exactly. Making a list of expenses and keeping bills or receipts will help you create an overall picture of your financial management style. If you are not used to saving money, you can waste a lot being totally unaware of it. Actually, eating/drinking out or regular unnecessary small purchases can bring big sums at the end of a month. Stop buying on impulse and prepare a shopping list before entering a supermarket.

2. Before you buy (the things you REALLY need), visit a few shops (also online), look for sales, lower prices of the same products in different shops. Such a habit may be a bit time-consuming but it is also very profitable and will bring lots of savings if it is carried out on a regular basis.

3. Collect change and money “leftovers”…on your savings account. It is little, but in the long run it will give quite a big number.

4. Stop wasting money on gifts. Birthdays, Christmas or other occasions can cost you a lot of unnecessary money. Do not buy the piles of things you are not even sure are wanted. It is better to buy one item, yet chosen reasonably.

5. Take part in a local Investment Development Account program. This will demand your participation in sessions connected with financial management and then you will receive $2 every time you save $1 through this program (it must be for home, education or business).

6. If you do not have the habit of saving a part of your monthly earnings regularly (even a small amount), you should consider making it automatic. Visit your bank and get to know more.

7. Utilize your employer’s matches to retirement savings contributions – sometimes it can concern even 100% of your contributions.

8. Get rid of or avoid any high interest credit cards or loans. You really should not pay 500% of interest rates for a payday loan in the situation when you try to find every single amount of money to save.

9. Have an emergency savings account so as to avoid taking unexpected loans. Remember about the right balance on the account if you do not want to pay fees.

10. Consider taking Earned Income Tax Credit. This is available also for employees with low income.

Simple tack which can help you save more money

Starting a new year, many of us think about our financial situation. We almost always want more, no matter how rich we are. Nonetheless, not so many of us are so rich that would not need to save some money in order to, for example, go on vacation in summer. Surprisingly, we have more options than asking for a pay raise if we want to increase our savings. There are behaviors in our lives that cost us unnecessary money. By eliminating them we are really able to finally put more into our piggy-bank. Read what you can do to improve your financial situation this year.

Know what you aim at

First of all, you should set a goal. It is a cliché, yet still not everyone appreciates its positive impact on your final achievement. Think what you need the money for, calculate how much it will demand and believe you can complete the task.

Analyse your behavior

Start with taking a good look at your everyday actions and decide which of them cost you the most. Next, think without which products that are bought on a daily basis you can make do or which can be replaced by free substitutes (coffee, sweets?).

Do not forget about subscriptions

Remember that even small numbers sum up to the big ones. ALMOST free subscriptions and things like delivery payments for shops are very often unnecessary costs. And in order to save money, you should consider getting rid of such additional spending.

Work on your discipline

This tip will probably involve the biggest amount of your effort. Be strong-willed and stop taking your credit card everywhere, so as to avoid temptations to buy the next unnecessary item. Do not go shopping on an empty stomach, as it is proven that hungry people buy more than they have planned. Stick to your list of basic products needed for you to survive and exercise your willpower.

Deceive your extravagance

If you are a “compulsive shopper” maybe you should think of making your savings automatic. By the means of automatic transfers you would avoid the pain caused by inability to spend the money you have just received. Out of sight, out of mind.

Find time to work on additional money

If you are really determined, the best way to increase your savings is to make some time in your week to work. Even a few hours of additional “job” will turn out to be fruitful at the end of year. Earning $400 for a month will give you $4,800 in a year. That’s quite a good deal.

Strategy for a pay rise

Finally, it is obvious that higher salary would easily help solve your financial problems, but despite of the fact that any pay rise must remain in your dreams for now, nobody says that you will be earning the money you earn now forever. You should always aim higher and you need a plan here. Talk to your supervisor and find out what you should do to receive a better salary. Then, gradually work on being a good candidate for a rise.